NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A52
SPONSOR: Zaccaro TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to a feebate
program for medium and heavy duty vehicles
PURPOSE OR GENERAL IDEA OF BILL:
To create a program of efficiency fees and rebates levied at the point
of registration for vehicles greater than ten thousand pounds
SUMMARY OF PROVISIONS:
Section one of the bill adds a new Article 17-D to the Vehicle and Traf-
fic Law (VTL) to create a "feebate" program, in which fees for low-effi-
ciency vehicles go to fund rebates for their higher-efficiency counter-
parts. This new article contains several new sections;
-Section 499-e of the VTL defines the purpose of the feebate program and
sets a goal of revenue neutrality
-Section 499-f creates definitions
-Section 499-g provides that this article shall apply to all vehicles
registered in the state of New York with a gross vehicle weight rating
exceeding ten thousand pounds
-Section 499-h creates the efficiency fees and rebates at the following
fuel efficiency and dollar amounts:
Fuel economy of less than three MPG or MPGe shall be levied a $45,000
fee Fuel economy of at least three but less than five MPG or MPGe shall
be levied a $30,000 fee Fuel economy of at least five but less than
seven MPG or MPGe shall be levied a $20,000 fee Fuel economy of at least
seven but less than ten MPG or MPGe shall be levied a $10,000 fee Fuel
economy of at least ten but less than 20 MPG or MPGe shall be provided a
$45,000 debate Fuel economy of at least 20 but less than 30 MPG or MPGe
shall be provided a $100,000 rebate Fuel economy of at least 30 MPG or
MPGe shall be provided a $150,000 rebate
This section also provides that the Department of Motor Vehicles (DMV)
Commissioner shall annually review and recommend adjustments to the
efficiency fee and rebate levels as needed based on such factors as
actual vehicle registration data, market availability and price points
of zero emission (ZEV) or near zero emission (NZEV) vehicles, actual and
projected fuel economies of covered vehicles, and any other factor they
deem relevant. The fees collected from the feebate program may be used
to cover the costs of administration of the program, and all fee and
rebate dollar amounts shall be prominently displayed on the DMV's
website as well as vehicle dealers' places of business.
Section 499-i provides that the Commissioner shall conduct an education
campaign to ensure that manufacturers, dealers, fleet purchasers, and
the general public are aware of the provisions of this article.
Section 499-j provides that the Commissioner shall prepare an annual
report on the feebate program examining the effectiveness and adequacy
of the fee and rebate levels, an aggregate description of the fuel econ-
omies of affected vehicles, and recommendations for legislative changes.
Section two of the bill sets the effective date of three years after the
act shall have become a law. As manufacturers typically need several
years to make substantial changes to a vehicle, a three-year effective
date will give the medium and heavy duty vehicle market time to adjust
to the financial incentives of a feebate program.
JUSTIFICATION:
New York seta statutory goal of a zero emission electricity sector by
2040, including 70 percent renewable energy generation by 2030, in the
historic Climate Leadership and Community Protection Act (CLCPA) of
2019. The state legislature later codified in Ch. 423 of 2021 the goal
that 100% of medium- and heavy-duty vehicles sold or leased in New York
be zero emission vehicles by 2045. The CLCPA's Final Scoping Plan, the
document which details the strategy by which the state is to achieve the
CLCPA's carbon emission goals, calls for an even tighter ZEV timeline of
50% of all medium-duty vehicle sales by 2030 and 80% of all heavy-duty
vehicle sales by 2035 (Scoping Plan: Full Report, December 2022, New
York State Climate Action Council, p.155.).
Many experts acknowledge, however, that without some kind of state
intervention to realign market signals, such objectives will be diffi-
cult to meet. This is because fossil fuel diesel trucks come tens of
thousands of dollars cheaper than their battery electric or hydrogen
fuel cell counterparts. This bill, modeled after similar legislation in
Vermont and California and recommended on page 156 of the CLCPA Final
Scoping Plan, would create a "feebate" program, in which fees for low-
efficiency vehicles go to fund rebates for their higher-efficiency coun-
terparts, for all trucks with a gross vehicle weight rating (GVWR)
greater than 10,000 pounds (setting the threshold at this GVWR ensures
that the program would apply to commercially owned vehicles, as lighter
duty trucks such as pickups or mini-vans' purchased for personal use
fall below this weight level).
The feebate program created by this bill would set fees between $10,000
and $45,000 for trucks with a miles per gallon (MPG) or miles per gallon
equivalent (MPGe) (which represents the number of miles a vehicle can
travel using a quantity of "fuel" - actually electricity - with the same
energy content as one gallon of gasoline) of less than ten. Trucks that
get ten or higher MPG or MPGe would receive a rebate between $45,000 and
$150,000 depending on fuel economy. With a typical diesel-powered
commercial truck achieving a fuel economy of only five to eight MPG,
while their battery-electric counterparts may receive one as high as 30,
these feebate levels are designed to reflect the trucking market as it
actually exists today. DMV would be able to regularly recommend adjust-
ments to the feebate levels, however, accounting for ZEV or near ZEV
model availability, vehicle registration data, and projected fuel econo-
mies and price points, in order to ensure that the program remains
effective in achieving its goals while maintaining its revenue neutrali-
ty.
Already in place in countries such as France, Austria, Denmark, and
Norway, a well-designed feebate program can properly capture the various
social and environmental externalities created by diesel-dependent
trucks. As stated in the NYS Climate Action Council's Final Scoping
Plan, "(d)iesel trucks and port equipment are one of the largest sources
of local air pollution in Disadvantaged Communities. Although they
comprise only a small portion of total vehicles in the State, diesel
trucks and buses are responsible for 30% of total particulate matter and
NOX emissions from mobile sources (Scoping Plan: Full Report, December
2022, New York State Climate Action Council, p. 159). As the American
Institute of Architects New York notes in its recent report on freight
logistics in the age of e-commerce, "(f)reight vehicle trips negatively
impact our city in a number of ways, including through GHG emissions and
other pollutants that contribute to poor air quality, noise, road wear
and tear, traffic crashes, and congestion. Mode shifting is a strategy
that mitigates these impacts by swapping the vehicles that deliver goods
from large trucks to smaller and/or cleaner vehicles." (Delivering the
Goods: NYC Urban Freight in the Age of E-Commerce , November 2022, AIANY
Freight and Logistics Working Group, p. 36). These negative impacts
manifest in a myriad of ways, including increased greenhouse gas emis-
sions (AIANY estimates a five percent increase in emissions in New York
City due to increasing truck volumes between 2005 and 2019, for a total
of 1.8 million additional tons of CO2 per year), increased emissions of
particulate matter, major safety impacts for more vulnerable road users
such as pedestrians, cyclists, the elderly, and individuals with
restricted mobility, increased congestion and traffic chaos from deliv-
ery vehicles which block lanes of traffic, and deafening noise pollution
in the typical range of 80 to 110 decibels (Delivering the Goods: NYC
Urban Freight in the Age of E-Commerce, November 2022, AIANY Freight and
Logistics Working Group, p. 7).
While a comprehensive solution to our state and city's trucking problem
will ultimately involve a range of proposals, including investments into
alternative modes of transport and better street design, the electrifi-
cation of the trucking industry is one important piece of the puzzle.
The feebate program created by this bill will better align market
signals with true environmental and social costs while hastening our
state's progress towards its ZEV transition goals as outlined in the
CLCPA and Ch. 423 of 2021.
PRIOR LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS:
None; program is self-financing.
EFFECTIVE DATE:
This act shall take effect immediately; provided that sections 499-e,
499-f, 499-g, 499-h, and 499-j of the vehicle and traffic law shall take
effect three years after they shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
52
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. ZACCARO, DAVILA -- read once and referred to the
Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to a feebate
program for medium and heavy duty vehicles
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The vehicle and traffic law is amended by adding a new
2 article 17-D to read as follows:
3 ARTICLE 17-D
4 FEEBATE PROGRAM FOR MEDIUM AND HEAVY DUTY VEHICLES
5 Section 499-e. Purpose of article.
6 499-f. Definitions.
7 499-g. Application.
8 499-h. Creation of feebate program.
9 499-i. Public awareness campaign.
10 499-j. Annual report.
11 § 499-e. Purpose of article. There is hereby created a feebate program
12 in which all covered vehicles are subject to either an efficiency fee or
13 an efficiency rebate, based upon such covered vehicle's fuel economy.
14 Such program shall be designed to be revenue neutral and to respond
15 dynamically to market trends, zero emission or near zero emissions model
16 availability, actual and projected covered motor vehicle registration
17 data, and any other such factor the commissioner deems relevant.
18 § 499-f. Definitions. As used in this article, the following terms
19 shall have the following meanings:
20 1. "Covered vehicle" or "covered motor vehicle" shall mean all medium
21 and heavy duty vehicles with a gross vehicle weight rating of greater
22 than ten thousand pounds registered on or after the effective date of
23 this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00519-01-5
A. 52 2
1 2. "Efficiency fee" shall mean a fee levied upon the owner of a
2 covered vehicle based on such vehicle's fuel economy pursuant to subdi-
3 vision two of section four hundred ninety-nine-h of this article.
4 3. "Efficiency rebate" shall mean a rebate given to the owner of a
5 covered vehicle based on such vehicle's fuel economy pursuant to subdi-
6 vision three of section four hundred ninety-nine-h of this article.
7 4. "Feebate program" shall refer to the system of efficiency fees and
8 efficiency rebates created in this article.
9 5. "Fuel economy" shall refer to the number of miles a covered vehicle
10 can travel using a specific amount of fuel or a combination of fuels, as
11 reflected in such vehicle's miles per gallon or miles per gallon equiv-
12 alent.
13 6. "Gross vehicle weight rating" shall mean the weight of a vehicle
14 consisting of the unladen weight and the maximum carrying capacity
15 recommended by the manufacturer of such vehicle.
16 7. "Miles per gallon" or "MPG" shall refer to the measure of distance
17 that a covered vehicle running on gasoline or diesel fuel can travel per
18 gallon of such fuel as rated by the Environmental Protection Agency.
19 8. "Miles per gallon gasoline equivalent" or "MPGe" shall refer to the
20 measure of distance that a covered vehicle running on non-liquid fuels
21 can travel per unit of energy as rated by the Environmental Protection
22 Agency.
23 9. "Revenue neutrality" or "revenue neutral" shall mean a goal that
24 the efficiency fees described in subdivision two of section four hundred
25 ninety-nine-h of this article cover the cost of the efficiency rebates
26 described in subdivision three of such section.
27 10. "Near zero emissions" shall mean a vehicle that uses zero emission
28 technologies or technologies that provide a pathway to zero emission
29 operations or that incorporates other technologies that significantly
30 reduce exhaust emissions of any greenhouse gas, criteria pollutant, or
31 precursor pollutant under any and all possible operational modes and
32 conditions.
33 11. "Zero emission" shall mean a vehicle powered by means of a battery
34 or fuel cell or a combination thereof, or another source of power, that
35 produces zero exhaust emissions of any greenhouse gas, criteria pollu-
36 tant or precursor pollutant under any and all possible operational modes
37 and conditions.
38 § 499-g. Application. This article shall apply to all covered vehicles
39 registered on or after the effective date of this section.
40 § 499-h. Creation of feebate program. 1. The commissioner shall either
41 levy an efficiency fee, at the dollar amount described in subdivision
42 two of this section, or furnish an efficiency rebate, at the dollar
43 amount described in subdivision three of this section, upon or to the
44 owner of each covered vehicle required to register in this state pursu-
45 ant to section four hundred one of this title at the time of such regis-
46 tration.
47 2. Efficiency fees. The commissioner shall levy an efficiency fee on
48 every covered vehicle that receives less than 10 MPG or MPGe in accord-
49 ance with the following table:
50 Fuel economy in MPG or MPGe: Dollar amount of efficiency fee:
51 Fewer than 3 $45,000
52 At least 3 but less than 5 $30,000
53 At least 5 but less than 7 $20,000
54 At least 7 but less than 10 $10,000
A. 52 3
1 3. Efficiency rebates. The commissioner shall furnish an efficiency
2 rebate to every covered vehicle that receives at least 10 MPG or MPGe in
3 accordance with the following table:
4 Fuel economy in MPG or MPGe: Dollar amount of efficiency rebate:
5 At least 10 but less than 20 $45,000
6 At least 20 but less than 30 $100,000
7 At least 30 $150,000
8 4. (a) The commissioner, in consultation with the commissioner of
9 environmental conservation and the president of the New York state ener-
10 gy research and development authority, shall annually review and recom-
11 mend adjustments to the efficiency fees and rebates provided in subdivi-
12 sions two and three of this section, respectively, as needed, to the
13 legislature with the goal of maintaining revenue neutrality for the
14 program.
15 (b) The commissioner may examine actual covered motor vehicle regis-
16 tration data for the prior fiscal year, market availability and price
17 points of covered vehicles which are zero emission or near zero emis-
18 sions models, actual and projected fuel economies of covered vehicles,
19 and any other factors the commissioner deems relevant for the adjustment
20 of the dollar amounts of the efficiency fees and rebates set forth in
21 this subdivision.
22 (c) Notwithstanding the provisions of paragraph (a) of this subdivi-
23 sion, the commissioner may use the revenues collected from the efficien-
24 cy fees described in subdivision two of this section to cover the costs
25 of administration of the feebate program and may incorporate such admin-
26 istrative costs into the design of the program when recommending adjust-
27 ments to the efficiency fee and rebate dollar amounts.
28 5. (a) The commissioner shall prominently display the dollar amounts
29 of efficiency fees and efficiency rebates and corresponding fuel econo-
30 mies described in this article on the department's website and shall
31 post a clear and conspicuous notice whenever such dollar amounts or fuel
32 economies are changed.
33 (b) The commissioner shall require that all dealers required to regis-
34 ter with the department under the provisions of section four hundred
35 fifteen of this title prominently display the dollar amounts of effi-
36 ciency fees and efficiency rebates and corresponding fuel economies
37 described herein at such dealers' places of business and on such deal-
38 ers' websites and shall promulgate regulations to effectuate the same.
39 § 499-i. Public awareness campaign. The commissioner shall conduct an
40 educational campaign to make covered vehicle manufacturers, dealers,
41 fleet purchasers, and the general public aware of the provisions of this
42 article. Such campaign may include public service announcements, adver-
43 tisements, media campaigns, mass mailings, conferences, presentations,
44 informational materials in print, electronic, or other media, or any
45 other strategy the commissioner deems fit to inform the public of the
46 feebate program created by this article. Such campaign must include
47 assistance by a natural person by phone and/or email in order to field
48 inquiries about such program.
49 § 499-j. Annual report. 1. No later than one year after the effective
50 date of this section, and annually thereafter, the commissioner shall
51 prepare a report on the feebate program established by this article.
52 Such report shall include:
53 (a) the dollar amounts and thresholds of the efficiency fees and effi-
54 ciency rebates of the prior year;
A. 52 4
1 (b) the amount of revenues collected by the department from efficiency
2 fees;
3 (c) the costs of complying with the provisions of this article;
4 (d) the amount of efficiency rebates disbursed to owners of covered
5 vehicles after accounting for the costs described in paragraph (c) of
6 this subdivision;
7 (e) an aggregate description of the number and types of registrations
8 of covered vehicles and the fuel economies in MPG or MPGe of such vehi-
9 cles;
10 (f) recommendations for any legislative changes to this article; and
11 (g) any other information the commissioner deems necessary to include
12 as a description and review of the feebate program.
13 2. Such report shall be delivered to the temporary president of the
14 senate, the speaker of the assembly, and the governor. Such report
15 shall also be posted for public review in a clear and conspicuous manner
16 on the department's website.
17 § 2. This act shall take effect immediately; provided that sections
18 499-e, 499-f, 499-g, 499-h and 499-j of the vehicle and traffic law, as
19 added by section one of this act shall take effect three years after
20 they shall have become a law. Effective immediately, the addition,
21 amendment and/or repeal of any rule or regulation necessary for the
22 implementation of this act on its effective date are authorized to be
23 made and completed on or before such effective date.
